Read the fine print in your real estate deal

I’ve used this space to share many of the usual and customary things to be aware of, watch out for, and pay close attention to as you cruise along through your Orange County real estate transaction – be it a home sale or a home purchase.

Since we all know that no two real estate transactions are ever exactly the same, this week we’re going to look at the two main areas of your documents that you need to read closely and understand about your deal. And trust me; I know this will be painful for some of you.

I’ve had plenty of clients sign and initial in the appropriate boxes on 37 pages of contracts and disclosures in 37 seconds flat and others who take two hours and 37 seconds to go through the same 37 pages. You know who needs to pay a little bit closer attention to detail, right?

Here's what to look at carefully:

1.Items concerning money – In addition to documenting the purchase price, there are several places in the purchase contract where little boxes are checked for either the buyer or the seller to pay for specific items such as termite repairs, county transfer tax, lifestyle enhancement fees (listen up, Ladera Ranch), home warranty policy, HOA transfer fees, and short sale negotiator fees. You’ll want to pay attention to these. Ask your Realtor to specifically show you all the things you’re paying for and all the things the other side is paying for. Early on in your contract negotiations, these may be the exact same items that bandied back and forth in counter offers. Go into your deal with your eyes wide open about the money.

2.Items concerning the timing of your required actions – the purchase contract used for most Orange County home sales has specific deadlines for actions that need to be taken by the seller and the buyer. When the dust has settled and you have come to a final agreement, whip out your calendar (hopefully on your smart phone or tablet, but if you are still hauling around that day planner, whip that out.) Make a note of the date your deposit is due in to escrow, the date your disclosures are due to the buyer, and the date your time is up for inspections and complete loan approval.

The most important date of all for buyers and sellers is the date the contingencies are due to be removed. For you buyers, this is your drop dead date for doing all of your inspections and getting the appraisal done and then deciding whether or not you are totally committed to moving forward with the purchase. The point at which, by removing your contingencies, you are putting your deposit money at risk if you cancel for any reason. For sellers, especially in this market, this is the last day of your torture. You’ll know if your buyers are in, or if they are bowing out. Which might not be such a bad thing if your home has gone up in value while the buyer has figured out they are out of the deal.

So let’s just say that it pays to read the fine print and ask the right questions – so you know what you’re paying for and when you need to be done with the things you’re required to do. That’s assuming you’re not a fan of surprises or drama when it comes to your Orange County home deal.

Leslie Sargent Eskildsen is an Orange County Realtor. She blogs about what she thinks Orange County homebuyers and sellers need to be successful in the real estate market. Find her blog at whatagentsfeartellingyou.com